Question : ___________ is the risk associated with the borrower's inability to repay the loan.

Option 1: Credit risk

Option 2: Market risk

Option 3: Operational risk

Option 4: Liquidity risk

Question : What is the term used to describe the risk that changes in exchange rates will affect the value of future cash flows associated with an investment or business operation?

Option 1: Currency risk
 

Option 2: Liquidity risk
  

Option 3: Market risk

Option 4: Systemic risk

Question : What is the term used to describe the risk that changes in exchange rates will affect the value of an investment portfolio containing assets denominated in different currencies?

Option 1: Currency risk
 

Option 2: Credit risk
  

Option 3: Liquidity risk

Option 4: Market risk

Question : What is the term used to describe the risk that changes in interest rates will impact the value of fixed-income investments denominated in foreign currencies?

Option 1: Interest rate risk
 

Option 2: Credit risk
 

Option 3: Market risk

Option 4: Liquidity risk

Question : The following represent the opportunity cost of holding money, except:

Option 1: Loss of utility from goods that could have been purchased with the same amount of money

Option 2: Loss of interest-earning on cash holdings

Option 3: Loss of purchasing power of money due to inflation

Option 4: Transaction cost in withdrawing money